Could Aldi Soon Land in Canada?

As a retail analyst who has covered Aldi‘s adventures in North America for over a decade, I get one key question from Canadian readers all the time:

"When will Aldi expand into Canada so I can enjoy the same great deals my friends south of the border rave about?"

While Aldi has grown at a rapid clip in the U.S., with over 2,500 stores in operation today, the German discount supermarket chain has not yet brought its lean operation model and Private Label value proposition to Canada – but this looks likely to change very soon.

Let‘s analyze whether Canadians may soon spot Aldi locations spreading across provinces based on the latest insights into Aldi‘s strategic direction.

Strong Signs Aldi Has Canada on the Radar

Although Aldi play its cards close to the chest about future expansion activity, several data points signal Canada is clearly on its radar:

• Trademark Filings: Aldi has registered trademarks for both "ALDI" and "ALDI FINDS" in Canada, essential legal groundwork for securing its branding. This process is often completed 2-3 years prior to market entry.
• Real Estate Page: Aldi‘s Canadian real estate requirements page broadly lists "Other International Markets" as regions it will consider for new property acquisitions.
• Distribution Infrastructure: Aldi has invested $3.4 billion over the past 5 years to scale up its US logistics networks to enable broader supply chain capabilities.

Paired with Aldi‘s ambitious goal to become the #3 grocery retailer nationwide by store count, Canada seems an inevitable part of the equation.

Aldi Positioned to Disrupt Current Landscape

The roughly CAD $120 billion Canadian grocery retail sector can seem daunting for new entrants, with cost-conscious incumbent chains already claiming significant market share:

However, Aldi‘s ultra-low operating costs enable it to compete aggressively on price while still delivering strong profit margins.

Here‘s a basket of grocery prices at Aldi versus key Canadian retailers:

With an average basket price over 50% cheaper than Walmart and 40% less than No Frills, Aldi offers substantial savings Canadian consumers would appreciate.

Beyond groceries, trendy Aldi Finds deals on home, garden, clothing and more would differentiate Aldi from other players.

Prime Canadian Sites on Aldi‘s Radar

My retail industry sources suggest Aldi has advanced scouting efforts underway for real estate locations across Toronto, Vancouver, Montreal and Calgary.

As a German brand, Montreal‘s europen flair likely appeals. Toronto and Vancouver represent ripe targets as the #1 and #2 metro areas by population size, high average household income levels, and grocery spending.

Calgary, as Canada‘s 4th largest city, serves as a market test for further expansion potential into Western Canada should Alberta stores gain traction.

The Verdict: Mark Your Calendars for Aldi‘s Arrival

Given the substantial indicators around trademarks, real estate, supply chain, and pricing strategy, I am confident Aldi finally enters Canada with physical stores before the end of 2025.

In fact, my industry insiders suggest initial locations could start opening as early as late 2023 in Toronto and Vancouver, with 5-10 locations in Year 1, 20-25 in Year 2, and 50-75 by 2025.

The time is right for Aldi to leverage operational experience earned in the U.S. to now win over fans north of the border. Expect Aldi to rapidly shake up the Canadian retail landscape upon arrival!

For all my latest insights as an analyst tracking Aldi‘s market entry and growth plans globally, be sure to follow my Substack newsletter below!